New formats in the market of building and finishing materials and DIY trade
At the end of 2017, the retail market of building and finishing materials, goods for home and garden grew by 1.8%, amounting to 1.4 trillion rubles.
Despite the fact that in the first half of 2017 the dynamics was negative, the increase in consumer activity in the second half had a positive impact on the market. The best performance is in the segment of finishing materials, but on the construction market the decline continued, the INFOLine study says - “DIY market in the Russian Federation. Results of 2017 Trends in 2018 Forecast to 2020 ”.
A decrease in the turnover of building and finishing materials and household goods has been observed since 2015 and is associated primarily with a decrease in real incomes of the population and an increase in the cost of servicing loans. However, from the second half of the year, consumer activity resumed growth in almost all segments of DIY trade.
The drivers were the weakening position of regional networks amid a sharp increase in price competition and the activity of major retailers. They speak with caution about the development of online and omnichannel sales. Buyers today adhere to the rational consumption model, comparing the cost of goods online and offline and waiting for stocks and special offers.
